Crocs Inc Securities Lawsuit Investigation

Shamis & Gentile P.A., one of the nation's premier class action law firms specializing in securities fraud cases, is investigating potential claims against Crocs Inc (CROX).

If you purchased or held Crocs Inc securities between November 03, 2022 and October 28, 2024, you may be eligible to join this lawsuit and seek compensation for your losses.

About Crocs Inc

Crocs Inc (NASDAQ: CROX) is a well-known brand in the casual footwear space. Founded in 2002, Crocs has grown into a global brand, recognized for its iconic Classic Clog and other comfortable shoe designs. The company is headquartered in Broomfield, Colorado, and is publicly traded on the Nasdaq Global Select Market.

Crocs employs over 2,800 people worldwide and has a significant presence in both direct-to-consumer and wholesale channels. In February 2022, Crocs acquired HEYDUDE, another footwear brand focused on casual and lightweight shoes. This acquisition quickly became a substantial part of Crocs’ business, with HEYDUDE accounting for about 25% of the company’s total revenues in 2022.

The Allegations

It's alleged that Crocs and certain executives misled investors regarding the true nature of HEYDUDE’s revenue growth following its acquisition. Specifically, between November 03, 2022 and October 28, 2024 (the class period), Crocs is accused of artificially inflating HEYDUDE’s reported revenues by aggressively overstocking third-party wholesalers, rather than relying on genuine retail demand.

Despite public assurances that the company would avoid overstocking, Crocs allegedly engaged in “pipeline stuffing”, which is shipping excess inventory to wholesale partners to boost short-term revenue figures. As these retail partners began to destock and actual consumer demand waned, the company’s financial results suffered. This information was not disclosed to investors in a timely manner.

The truth began to emerge in a series of disclosures throughout 2023 and 2024. Notably, on October 29, 2024, Crocs’ stock price dropped by approximately 19.2% after the company admitted that it had “shipped too much product” and that HEYDUDE’s performance was weaker than expected due to excess inventory in the market.

In total, Crocs’ stock experienced several significant declines as the extent of the overstocking and its impact on future growth became clear.

A class action complaint, filed on March 11, 2025, alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, focusing on material misstatements and omissions that misled shareholders during the class period.

Your Rights and Next Steps

If you bought or held Crocs Inc securities between November 03, 2022 and October 28, 2024, you may have the right to participate in this lawsuit.

To move forward, gather documentation of your Crocs Inc stock purchases, sales, and losses during the class period. Lawyers are ready to help answer your questions, evaluate your potential claim, and guide you through the process.

You May Be Entitled to Compensation

If you experienced financial losses as a result of purchasing Crocs Inc securities during the class period, you may be entitled to compensation through a lawsuit. Completing the below form is the first step to protecting your rights and potentially recovering your losses. Lawyers are ready to help review your information and determine your eligibility.

Take action now by filling out the below form to join the lawsuit.